writing racing off as a business?

[ts racer]

do any of you racers do this,i need to find out how i can do this and who can i call and ask questions too?
thanks

[Jim Monson]

Call an accountant or a good tax person.

[DOTracer]

Keep in mind not only the tax implications, but also the most recent concerns with the DOT and towing on highways as a racing business operation. Your towing operations are held to a higher standard with your racing being used as a business. Not following the regulations brings in the risk of BIG fines from the DOT. There has been many posts here on the net about the DOT cracking down on racers, both little guys and folks racing for profit. Just do your research and be aware of all the pros & cons of racing as a business.

http://www.dragracingonline.com/deadon/vii_7-1.html

[ts racer]

very interesting,thanks

[Mark Nealen]

Hi
I have a business and I right off the racing as averitizing. I dont know much about it my acountant takes care of this. hope this helps

[katman]

Hi
I have a business and I right off the racing as averitizing. I dont know much about it my acountant takes care of this. hope this helps

Same Here!

[Monty Mikho]

Search for better accountants. If the IRS grabs your name out of a hat you will have some nice fines to pay. There is a big difference between a business and a hobby. You will need to prove that this is a business for you and not a hobby to the IRS. Just food for thought.. I spoke with 3 accountants and they all said it was a pretty good risk. One can get away with losses for 3 years but after you will be flagged.. After sometime your name might pop up..

[joel]

just wanted to add something to montes reply about business' losing money. i dabble in landlording a little and have many friends who do the same and all but one of us show a loss year after year. a guy i used to work for didnt show a profit margin for the first fifteen or so years and he was pissed when he did start making money. i personally do this part time and do not have a business and llc and all that. food for thought.



joel

[Rick Miller]

Search for better accountants. If the IRS grabs your name out of a hat you will have some nice fines to pay. There is a big difference between a business and a hobby. You will need to prove that this is a business for you and not a hobby to the IRS. Just food for thought.. I spoke with 3 accountants and they all said it was a pretty good risk. One can get away with losses for 3 years but after you will be flagged.. After sometime your name might pop up..

Sometimes your name can pop up after only 2 years !!! TRUST ME ON THIS!! IT'S NOT PRETTY :(

[Monty Mikho]

Also please remember that most accountants are like lawyers.. There aint too many of them who are gonna steer ya in the right direction if they know they can make money off you...